India has developed one of the world’s most consequential startup ecosystems during the decade following the launch of Startup India in January 2016. The ecosystem has expanded in scale, geography, sectoral diversity and institutional depth, while the funding environment has simultaneously become more selective and fundamentals-oriented. This research article examines the current Indian startup ecosystem using a structured secondary-data review of government publications, the Economic Survey, Startup India reports, industry analyses and contemporary institutional evidence. The analysis finds that the ecosystem has moved from a predominantly metropolitan, consumer-internet-oriented model toward a broader system encompassing artificial intelligence, fintech, enterprise technology, deep technology, biotechnology, climate technology, space technology and advanced manufacturing. By 31 March 2026, more than 2.23 lakh startups had received DPIIT recognition, and these recognised entities had reported more than 23.36 lakh direct jobs. More than 1.07 lakh recognised startups had at least one-woman director or partner, while approximately half of recognised startups originated from Tier-II and Tier-III cities. Funding, however, has entered a more disciplined phase: Indian technology startups raised approximately US$11.7 billion in FY2025–26, down from US$14.3 billion in FY2024–25, even as early-stage funding increased and technology IPO activity strengthened. The study argues that this pattern represents a structural transition from startup quantity and valuation expansion toward capital efficiency, technological differentiation, profitability, institutionalisation and global competitiveness. The article proposes a conceptual framework linking government policy, finance, talent, incubation, technology, market access, and innovation capability with startup performance and sustainable economic development. Policy recommendations emphasise startup survival, deep-tech capital, regional innovation clusters, university-industry linkages, women’s access to growth capital, public procurement and internationalisation.